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The company unveiled the service as part of its press conference at the E3 gaming event today. Microsoft said the service will include 30 million tracks available on the Xbox, as well as Windows 8 devices such as PCs and tablets.

The announcement is part of Microsoft's effort to turn the Xbox video game console into the entertainment hub of the home. It also likely signals the death of its Zune Music service, with the company all but completely abandoning the music player.

The service, which CNET first reported on, could give the music labels another high-profile distribution channel. While the Zune never made much of an impact with consumers, the Xbox already comes with a large installed base of users.

The service is also expected to work with phones as well.

Microsoft is following the path of Sony, which has also brought music to many devices, including the PlayStation and multiple mobile devices.